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Trustee responsibility

By Terry Savage on September 22, 2020 | Wild Card & Pandemic Related

Dear Terry:
As a document separate from his trust, my brother-in-law left me $15,000.00 for carrying out the details of his trust. He passed away 2 years ago.
Does the $15k count as income, or would it fall under the category of a gift?
Thank you!

Terry Says

Ask the lawyer who wrote the documents, but my opinion is that it would fall under the inheritance laws as a tax free gift. If no one sent info to the IRS declaring it is a taxable payment for services from the estate, then you’re home free. Only if the lawyer sent a 1099 to you and a copy to the government would it be taxable.



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